Plusvalia tax in Spain is calculated on the cadastral value of the land, not on the profit you make when you sell. The law also lets you choose between two methods, and you pay whichever gives the lower figure. It’s the tax your town hall charges when you sell, inherit or receive a property as a gift in Spain, and the rate can never exceed 30%.
There’s a second point that changes the math: if you sell for less than you paid, there’s no tax, but you have to file a return and prove it with your deeds. And watch out for the tables you’ll find online. The coefficients announced for 2025 and 2026 never took lasting effect, because Spain’s Congress didn’t ratify the decrees that approved them.
In this guide, you’ll see what this tax is, who pays it and how it’s calculated with the current coefficients. Then you’ll see the same apartment calculated with both methods, when you don’t pay, the deadlines and what changes if you sell as a non-resident.
Do you want a expert consultation? Contact us and we will help you.
The 30-Second Version
- Who pays: in a sale, the seller; in an inheritance or a gift, the person who receives the property.
- How it’s calculated: plusvalia tax in Spain is the land’s cadastral value times a coefficient based on how long you owned it, times your town hall’s rate (30% at most).
- The method that suits you: if your actual gain on the land is lower, you can ask for the tax to be based on it, and you pay the lower amount.
- Deadlines: 30 business days after a sale or gift, and six months after the date of death for an inheritance, extendable to one year.
What Is Plusvalia Tax (and What It Isn’t)
Plusvalia tax, known in Spain as plusvalía municipal, is the common name for the Tax on the Increase in Value of Urban Land (IIVTNU). It’s a local tax that town halls charge on the increase in value of urban land when a property changes hands through a sale, an inheritance or a gift. It’s regulated by Articles 104 to 110 of Spain’s Local Finance Law (texto refundido de la Ley Reguladora de las Haciendas Locales).
What it isn’t: the capital gains tax on your Personal Income Tax (IRPF) return. They’re two separate taxes triggered by the same sale. Plusvalia tax goes to the town hall and only looks at the land. The capital gain goes on your personal tax return in Spain and measures the difference between the purchase price and the sale price of the whole property.
Paying one doesn’t exempt you from the other. That’s why you can owe plusvalia tax even when your real profit was small, and the other way around.
Who Pays Plusvalia Tax in Spain, by Type of Transaction
The person who benefits pays: in a sale, the seller; in an inheritance or a gift, the person who receives the property.
| Transaction | Who pays |
|---|---|
| Sale | The seller |
| Sale by an individual who isn’t a Spanish tax resident | The buyer, as a substitute taxpayer for the seller |
| Inheritance | The heir or legatee who receives the property |
| Gift | The person who receives the gift |
This comes from Article 106 of the law. In an inheritance, plusvalia is paid separately from inheritance tax, and in a gift, separately from gift tax. They’re different taxes, with different deadlines and different tax offices.
Who Pays Plusvalia Tax When You Sell a Property?
The seller, because the seller is the one who gains from the increase in value. One detail worth knowing early: buyer and seller can agree that the buyer pays. That agreement is valid between them, but not against the town hall, under Article 17.5 of Spain’s General Tax Law. If nobody pays, the town hall will go after the seller. The buyer also has to notify the town hall of the sale within the same deadline.
How Plusvalia Tax Is Calculated: The Two Methods
The town hall starts with the objective method, but if you prove your actual gain on the land was lower, that figure applies.
This system dates from Royal Decree-Law 26/2021, which rewrote the tax after Spain’s Constitutional Court struck down the old method in its ruling of October 26, 2021. The Constitutional Court upheld the new rules in 2023.
1. Objective Method: Land Cadastral Value Times a Coefficient
You take the cadastral value of the land on the date of the transaction, which appears on your property tax (IBI) bill. You multiply it by a coefficient that depends on the full years you’ve owned the property, up to a maximum of 20. If you’ve owned it for less than a year, the coefficient is prorated by full months. The result is the tax base, and the town hall’s rate applies to it. Some town halls first reduce the cadastral value by up to 15%, if their tax bylaw allows it.
| Years of ownership | Maximum coefficient |
|---|---|
| Less than 1 year | 0.15 |
| 1 year | 0.15 |
| 2 and 3 years | 0.14 |
| 4 years | 0.16 |
| 5 years | 0.18 |
| 6 years | 0.19 |
| 7 years | 0.20 |
| 8 years | 0.19 |
| 9 years | 0.15 |
| 10 years | 0.12 |
| 11 years | 0.10 |
| 12 to 15 years | 0.09 |
| 16 years | 0.10 |
| 17 years | 0.13 |
| 18 years | 0.17 |
| 19 years | 0.23 |
| 20 years or more | 0.40 |
These are the maximum coefficients set by Article 107.4 of the law since January 1, 2024 (Royal Decree-Law 8/2023). They’re still in force, according to the consolidated text in the BOE (Official State Gazette). They’re caps: each town hall sets its own in its tax bylaw and can use lower figures. The coefficients approved for 2025 (Royal Decree-Law 9/2024) and for 2026 (Royal Decree-Law 16/2025) lost effect when Congress repealed those decrees. The 2026 ones only applied for a few weeks in January.
2. Actual Gain Method: The Land’s Increase Between Purchase and Sale
Here, you subtract the purchase value from the sale value and apply the land’s share of the total cadastral value to the difference. For each value, the higher of the deed value and any value set by the tax authorities applies. And costs and taxes aren’t included: notary fees or the transfer tax you paid when you bought don’t count. For inheritances and gifts, the value declared for inheritance or gift tax is used. This method doesn’t apply automatically: you have to request it when you file, with both deeds.
Here’s how to calculate plusvalia tax in Spain step by step:
- Find the cadastral values of the land and of the whole property on your latest IBI bill or on the Cadastre’s official e-portal.
- Count the full years between the date you acquired the property and the date of the sale, gift or death.
- Multiply the land’s cadastral value by your town hall’s coefficient for those years. That’s your objective tax base.
- Work out your actual gain on the land: sale price minus purchase price, times the land’s share of the cadastral value.
- Take the lower base and multiply it by your town hall’s rate.
- Subtract any tax reduction your town hall’s bylaw offers for your case.
Summary of the Steps
- Look up the land and total cadastral values.
- Count your full years of ownership.
- Calculate the objective base with the coefficient.
- Calculate your actual gain on the land.
- Apply the rate to the lower base.
- Subtract any reductions you qualify for.
How Much You Pay: The Same Apartment Calculated Both Ways
It depends on the land’s cadastral value, how long you’ve owned the property and your town hall’s rate; the price only matters under the actual gain method.
How Much Is Plusvalia Tax in Spain When You Sell an Apartment?
With your IBI bill and your deeds, you can estimate it in a few minutes. Here’s a worked example in a town that uses the maximum coefficients and a 30% rate, like Barcelona. Laura, an American engineer, bought her apartment 12 years ago for €180,000 and is now selling it for €260,000. Tomás bought his 19 years ago for €250,000, near the peak of the market at the time, and is selling it for €265,000.
| Item | Laura’s apartment (12 years) | Tomás’s apartment (19 years) |
|---|---|---|
| Total and land cadastral value | €120,000 · land €54,000 (45%) | €150,000 · land €60,000 (40%) |
| Objective method base | €54,000 × 0.09 = €4,860 | €60,000 × 0.23 = €13,800 |
| Actual gain method base | €80,000 × 45% = €36,000 | €15,000 × 40% = €6,000 |
| Tax at a 30% rate | Objective: €1,458 · Actual: €10,800 | Objective: €4,140 · Actual: €1,800 |
| Best option | Objective method: pays €1,458 | Actual gain method: pays €1,800 and saves €2,340 |
In practical terms: if you made a solid profit on the sale, the objective method usually works out better. If you bought high and are selling for about the same, or you’ve owned the property for many years, always run both numbers. Tomás would overpay by €2,340 if he didn’t ask for the actual gain method.
Madrid and Barcelona: Plusvalia Tax Rate and Reductions
Each town hall sets its own plusvalia tax rate, coefficients and reductions within the limits of the law. Here’s how it works in the two cities where we have offices:
| Item | Madrid | Barcelona |
|---|---|---|
| Tax rate | 29% | 30% |
| Coefficients | Set by its bylaw; its own official example uses 0.14 for three years, the legal maximum | The legal maximums, except under one year, which is 0.05 |
| Reduction when inheriting the deceased’s main home | For parents, children, spouses or registered partners: 95% if the land’s cadastral value is €60,000 or less; 85% up to €100,000; 70% up to €138,000; and 40% above that | 95% for the spouse, children or adopted children, and people who lived with the deceased for the previous two years, if they keep the property for three years |
Sources: the City of Madrid Tax Agency and Barcelona’s tax bylaw 1.3. Bylaws can change every year, so check the rate on your town hall’s e-portal before you pay.
Do you want a expert consultation? Contact us and we will help you.
When You Don’t Pay: Losses, Exemptions and Reductions
You don’t pay if the land hasn’t gained value, in a few legal exemptions and, partly, thanks to each town hall’s reductions.
Do You Pay Plusvalia Tax If You Sell at a Loss?
No. If the sale value is lower than the purchase value, the transaction isn’t subject to the tax, under Article 104.5 of the law. But it isn’t automatic: you have to file a return with the town hall and provide both your purchase deed and your sale deed. The comparison excludes costs and taxes and only looks at the land’s share. If you don’t prove it, the town hall can assess the tax as if you’d made a profit.
The law also includes a few exemptions and cases that aren’t taxed. These are the most common:
- Divorce or separation: transfers between spouses or to the children under an annulment, separation or divorce ruling aren’t taxed. Neither are contributions to and allocations from the marital property.
- Deed in lieu of foreclosure: handing your main home to the bank to cancel the mortgage (dación en pago) is exempt, and so is the foreclosure of that home.
- Historic properties: properties in historic districts or declared of cultural interest are exempt when the owner has paid for conservation or restoration work.
There’s no general exemption for plusvalia tax on inheritance. What the law does allow is for each town hall to reduce the tax by up to 95% when children, spouses or parents inherit (Article 108.4). The conditions vary a lot from town to town: in Madrid and Barcelona, they only cover the deceased’s main home, as the table above shows.
Deadlines, Payment and What Happens If You’re Late
You have 30 business days for sales and gifts, and six months for inheritances, extendable to one year.
When Do You Pay Plusvalia Tax?
Within that deadline, counted from the date of the transaction. For a sale or a gift, that’s the day you sign the deed; for an inheritance, the date of death. Business days exclude Saturdays, Sundays and public holidays. Each town hall decides whether you use self-assessment, where you calculate and pay yourself, or file a return and then receive the town hall’s assessment. If you need more time for an inheritance, request the extension before the six months are up.
If you file late without the town hall asking you to, you pay a surcharge of 1% plus an extra 1% for each full month of delay. After 12 months, the surcharge is 15% plus late-payment interest (Article 27 of the General Tax Law). If the town hall finds the late filing itself, there may also be a penalty.
Non-Residents: What Changes When You Sell
If you sell while living outside Spain, you still owe the tax, but the buyer pays it as a substitute and deducts it from the price.
This rule comes from Article 106.2 of the law, and it only applies to sellers who are individuals. What matters is your tax residency in Spain, not your nationality or whether you have an NIE (Foreigner Identification Number).
Don’t confuse it with another amount withheld at the same signing. On top of this, the buyer must keep 3% of the price and pay it to the Spanish Tax Agency with Form 211. It’s a payment on account of the seller’s income tax (Article 25.2 of the Non-Resident Income Tax Law). We cover this in detail in our guide to taxes in Spain for non-residents.
Here’s how it plays out: imagine Laura has moved back to the United States before selling. The buyer would pay the town hall the €1,458 in plusvalia tax and also withhold €7,800 for the Spanish Tax Agency, which is 3% of €260,000. At signing, Laura would receive €250,742, and she’d later report her gain as a non-resident.
Costly Plusvalia Tax Mistakes
The most expensive mistakes with this tax aren’t math errors. They’re about the method, the deadline and the paperwork.
- Not running the actual gain method: if you don’t request it, the objective method applies, and if you bought high, you can overpay, like Tomás.
- Assuming a sale at a loss clears you without doing anything: if you don’t file and provide your deeds, the town hall can still assess the tax.
- Using a coefficient table that isn’t in force: many websites still show the 2025 or 2026 figures, which lost effect.
- Missing the 30 business days: the surcharge starts at 1% and rises with each full month of delay.
- Forgetting the extension for an inheritance: if accepting the inheritance is taking time, request it before the six months are up.
Before you sell, tax planning for the transaction tells you how much you’ll pay between plusvalia and income tax, and which method to use.
Knowing how plusvalia is calculated is only half the job. The other half is applying the method that suits you, with your town hall’s coefficients, on time. At ILLAY Legal, we review your sale with both methods, check your town hall’s bylaw and help you file through our taxes in Spain service. That includes sellers who don’t live here, all 100% online and in your language. Tell us when and for how much you bought, your sale price and where the property is, and we’ll tell you how much plusvalia tax you’ll pay and with which method.
Keep Reading:
- Buying property in Spain: requirements and steps.
- Spanish taxes for expats: what to know before filing.
- Real estate due diligence in Spain.
Frequently Asked Questions About Plusvalia Tax in Spain
Has plusvalía tax in Spain been abolished?
No, it was reformed, not abolished. In October 2021, the Constitutional Court struck down the old way of calculating it. Royal Decree-Law 26/2021 replaced it from November 10, 2021, with the two methods explained above, and the Constitutional Court confirmed in 2023 that the new rules are valid. So if you sell, inherit or receive a gift today, you’ll generally have to file. The headlines about it disappearing usually refer to that 2021 ruling, or to the higher coefficients that were repealed in 2025 and 2026.
When does plusvalia tax on an inherited property expire?
After four years, counted from the day after the filing deadline ends: six months after the date of death, or one year if you requested the extension. Without an extension, that’s about four and a half years from the death, under Articles 66 and 67 of the General Tax Law. The clock stops and restarts with any formal action by the town hall to assess it, or any step you take to file or pay. If you receive an assessment for an old inheritance, check the dates and notices before paying.
Does plusvalia tax reduce my capital gains tax in Spain?
Yes, although it isn’t a tax credit: when you sell, the plusvalia tax you pay is subtracted from the sale value when calculating your capital gain for Personal Income Tax (IRPF). That’s because it’s a tax inherent to the sale (Article 35 of the Personal Income Tax Law). If you paid it when you inherited or received a gift, it’s added to your acquisition value, which lowers your gain when you sell later. Either way, keep your proof of payment. It’s what the Spanish Tax Agency will ask for if it reviews your return.
Who pays plusvalia tax when co-owners split a property?
Usually nobody, at that point. Picture two co-owners of a single property that can’t be divided, like an apartment, who end their joint ownership: one keeps it and pays the other in cash. Spain’s Directorate General of Taxation and Supreme Court treat this as defining a right that already existed, not as a taxable transfer. Plusvalia tax is paid when that owner sells, with the years counted from the original purchase. There may be tax if several properties are owned together and they could have been split differently.
How do I challenge a plusvalia tax assessment?
It depends on how you paid. Say you filed a self-assessment and paid too much, for example because you sold at a loss or the actual gain method was lower. You can request a correction and a plusvalia tax refund within four years. If the town hall sent you the assessment, you have one month from the notice to file a request for reconsideration (Article 14 of the Local Finance Law). After that, the assessment becomes final and can only be reviewed in very limited cases.
What documents are needed to determine plusvalia tax liability?
You’ll need the deed for the transaction (sale, inheritance or gift) and the deed through which the property was acquired. You’ll also need your latest IBI bill or the cadastral reference, plus your NIE or passport. For an inheritance, add the death certificate and the will or the declaration of heirs. If you’re going to request the actual gain method or claim a loss, both deeds are essential, because the comparison uses their values. Some town halls also ask for their own form or an online self-assessment.
Which online calculators can help estimate plusvalia tax?
The most reliable plusvalia tax calculator is the one on your town hall’s website, or on the website of the regional body that manages its taxes. The City of Madrid offers an estimate calculator, and so does OPAEF, which handles taxes for many towns in the province of Seville. Private calculators are useful as a guide, but they don’t always apply your town’s coefficients or the actual gain method. For a reliable figure, you need the land’s cadastral value, both deeds and your town hall’s tax bylaw.
